Golden Ocean (Hold, TP: NOK121.00) - Valuation leaves fair risk/reward
Despite intact appealing long-term supply-side fundamentals, we find the risk/reward less attractive at the current valuation. We believe the disconnect between elevated second-hand asset values and the prevailing TC market leaves the dry bulk names exposed to potential downside risk on a wavering Chinese demand outlook for 2024e. Hence, we estimate Golden Ocean’s current NAV at a supportive NOK126 for P/NAV 0.9x, and have raised our target price to NOK121 (106), but have downgraded to HOLD (BUY).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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